Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A call option on APPL stock with an expiration date of January 20, 2022 has a strike price of $160. The current stock price of

  1. A call option on APPL stock with an expiration date of January 20, 2022 has a strike price of $160. The current stock price of AAPL is $142. The option premium is $12. If I buy this option today, which of the following statements is true? Assume each option is for 1 underlying share.

    I purchase 1 APPL share at a price of $160 today.

    I pay a price of $12 to the option seller.

    I sell 1 APPL share at a price of $142 today.

    I purchase 1 APPL share at a price of $160 today.

  1. A benchmark index has three stocks priced at $50, $26, and $30. The number of outstanding shares for each is 350 shares, 400 shares, and 700 shares, respectively. If the market value weighted index was 500 yesterday and the prices changed to $48, $21, and $28, what is the new index value?

    458.08

    600

    480.28

    510.05

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A First Course in Quantitative Finance

Authors: Thomas Mazzoni

1st edition

9781108411431, 978-1108419574

More Books

Students also viewed these Finance questions

Question

Define marketing concepts.

Answered: 1 week ago

Question

1 what does yellow colour on the map represent?

Answered: 1 week ago